Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[scho63]

Originally Posted by Nightfyre

Net of contributions, a little over doubled, depending on the day. After five years of virtually no growth on my maxed out Roth contributions, I started playing with some call options and picking specific stocks. I haven't really refined my trading strategies with options yet, but you learn some expensive and valuable lessons.
The rule I am currently trying is to make a prediction, buy the position, and see it through. I actually left a huge amount of money on the table by exiting positions ahead of my predictions because I had tidy gains and was living by the "Pigs get fat, hogs get slaughtered" thought process.

The great thing about options though, is that you can make sufficient returns for your whole portfolio using just 5% of your actual account value. I have been sitting on roughly 60% cash since June and still making good gains. (I also have ~25-30% of my portfolio in stocks I have selected individually.)

I call BS on this as naked option trading is not an allowed investment option for retirement accounts of any kind.

[Nightfyre]

Originally Posted by scho63

I call BS on this as naked option trading is not an allowed investment option for retirement accounts of any kind.

You can purchase calls and puts. You cannot SELL naked options, which I don't do.

[ThaVirus]

Originally Posted by hometeam

This is it.

Banks knows I will pay. I havent missed a payment since I first took out a 500 limit card when I was 18. I have racked up and payed off tens of high dollar loans, and am way down from my total credit limits.

800+ credit vs 750 doesnt really mean anything when you look at the whole picture. The whole picture shows I pay, and they can make interest off me. They want to give me money.

Beyond that, my plan is to have my emergency fund in place by jan 1. I went ahead and did 6% on my 401k at the new job, but I dont get a match until 1 year, and im not vested until 5 :/

I have already been offered a raise at my new job, as I have taken on even more responsibilities than we initially thought, once we got into the heart of things and found out wtf was happening here behind the scenes. That raise goes into effect Jan 1 also.

So did you get your emergency fund in place for the new year?

And what's the monthly payment on an $85k mortgage if you don't mind me asking? I'm guessing it's over 30 years?

[ghak99]

Originally Posted by lewdog

Any recommendations for sectors that lagged in 2016 and can be used for increasing what could be minimal gains in 2017?

Are you looking for a play on a deregulation move?

It's been on my mind, but I've been too busy to find something to get into.

[Buehler445]

Originally Posted by lewdog

Any recommendations for sectors that lagged in 2016 and can be used for increasing what could be minimal gains in 2017?

Originally Posted by ghak99

Are you looking for a play on a deregulation move?

It's been on my mind, but I've been too busy to find something to get into.

I'd say oil companies would be a good idea. EPA chief is an oil man, so one could anticipate better regulations there as well as after that big of a break in the oil price, surely there will be some sort of retracement up anyway. Maybe not.

And do the math, if my stupid ass can see it everyone else can too.

EDIT: I'd GTFO of any health care stocks. Maybe not pharmaceuticals, but certainly health care and health insurance stocks. If Obamacare gets repealed, it may be UGLY.

[Nightfyre]

Originally Posted by Buehler445

I'd say oil companies would be a good idea. EPA chief is an oil man, so one could anticipate better regulations there as well as after that big of a break in the oil price, surely there will be some sort of retracement up anyway. Maybe not.

And do the math, if my stupid ass can see it everyone else can too.

EDIT: I'd GTFO of any health care stocks. Maybe not pharmaceuticals, but certainly health care and health insurance stocks. If Obamacare gets repealed, it may be UGLY.

I tend to agree on the oil stocks. XOM is down a fair bit off it's recent highs and you know those former executives take care of their old companies.

Health insurance is interesting. I guess I tend to think that every time the insurance companies get a chance to lobby, they twist the legislation to make them money and the cost of health care rises. I am pretty cynical though.

[scho63]

Originally Posted by Nightfyre

You can purchase calls and puts. You cannot SELL naked options, which I don't do.

There is no option buying allowed, I meant to say no open contracts of any type.

You cannot even do covered calls

[scho63]

Originally Posted by lewdog

Any recommendations for sectors that lagged in 2016 and can be used for increasing what could be minimal gains in 2017?

I'll agree with the few posters who said energy. I also think biotech and pharma will do better as they have been beat up pretty bad.

I think home builders will do better in the next 4 years

[Nightfyre]

Originally Posted by scho63

There is no option buying allowed, I meant to say no open contracts of any type.

You cannot even do covered calls

Yes, you can. You cannot sell naked puts or calls, because the unlimited potential for loss constitutes indirect borrowing from the IRA, which is a prohibited transaction.

When you purchase puts and calls, you have a limited potential loss of your initial investment.

[Halfcan]

Originally Posted by Buehler445

I'd say oil companies would be a good idea. EPA chief is an oil man, so one could anticipate better regulations there as well as after that big of a break in the oil price, surely there will be some sort of retracement up anyway. Maybe not.

And do the math, if my stupid ass can see it everyone else can too.

EDIT: I'd GTFO of any health care stocks. Maybe not pharmaceuticals, but certainly health care and health insurance stocks. If Obamacare gets repealed, it may be UGLY.

My oil stocks were dividend super stars for a few years-then when the price of oil dropped-all went bankrupt. i dumped all my positions while they were still worth something and put the money into Pfizer.

I still get junk mail from the oil companies as they are working their way through Chapter 11. You can pick up Linn Energy-once a $30.00 dividend paying stock-for pennies now. Might be a good play if you can wait 10 years-and If they ever make a profit again.

Fracking laws will be tougher this time around for any kind of new American oil boom. Good luck.

[Abba-Dabba]

Originally Posted by scho63

I call BS on this as naked option trading is not an allowed investment option for retirement accounts of any kind.

Any positions you want to share?

Doing any calls on banks this week.

I have 100, 23 calls on BAC till the 27th. I'm thinking I will probably be out of them by close on friday.

[Buehler445]

Originally Posted by Halfcan

My oil stocks were dividend super stars for a few years-then when the price of oil dropped-all went bankrupt. i dumped all my positions while they were still worth something and put the money into Pfizer.

I still get junk mail from the oil companies as they are working their way through Chapter 11. You can pick up Linn Energy-once a $30.00 dividend paying stock-for pennies now. Might be a good play if you can wait 10 years-and If they ever make a profit again.

Fracking laws will be tougher this time around for any kind of new American oil boom. Good luck.

Meh,

Looks to me like oil is on the recovery some, There ought to be some values out there.

[scho63]

Originally Posted by RubberSponge

Any positions you want to share?

Doing any calls on banks this week.

I have 100, 23 calls on BAC till the 27th. I'm thinking I will probably be out of them by close on friday.

Not this week. I screwed up and missed TSLA. Wanted to jump in over a week ago and stock just keeps chugging higher.

I need to find a few goodies to look at.

I'm not big of bank stocks but they certainly will benefit from Trump and rising rates.

Do you ever buy any LEAPS?

[ghak99]

Originally Posted by Buehler445

I'd say oil companies would be a good idea. EPA chief is an oil man, so one could anticipate better regulations there as well as after that big of a break in the oil price, surely there will be some sort of retracement up anyway. Maybe not.

And do the math, if my stupid ass can see it everyone else can too.

EDIT: I'd GTFO of any health care stocks. Maybe not pharmaceuticals, but certainly health care and health insurance stocks. If Obamacare gets repealed, it may be UGLY.

I agree, but I got lucky and cashed in on KMI in '16, so I'm a bit afraid the gambling gods would bitch slap me for getting greedy and trying to double dip on oil.

[Abba-Dabba]

Originally Posted by scho63

Not this week. I screwed up and missed TSLA. Wanted to jump in over a week ago and stock just keeps chugging higher.

I need to find a few goodies to look at.

I'm not big of bank stocks but they certainly will benefit from Trump and rising rates.

Do you ever buy any LEAPS?

Don't worry about the money you didn't make. I scoped out NVDA 6 months ago and didn't put in a dime. Dumb. Have to move on.

I try to stay away from long options as much as I can. I am not a big fan of having a significant amount of money tied up for a long period of time without a dividend. Having said that, they definitely have there place to make money. Been looking long call options on MU at 25 but have not pulled the trigger.